Thai state oil giant PTT launches production of lithium-ion EV batteries

BANGKOK -- Thai oil and gas conglomerate PTT, has started making lithium-ion batteries, as it works to create a supply chain for its EV brand Neta and to capitalize on the growing green car market.

PTT Chief Executive Auttapol Rerkpiboon said the plant, owned by joint venture NV Gotion and located in Rayong province, southeast of Bangkok, has set up a production line to make lithium-ion batteries with a capacity of 2 gigawatt-hours per year.

"Capacity is expected to rise to 8 GW-hours over the next few years to meet rising demand," Auttapol said.

NV Gotion is 51% owned by PTT subsidiary Nuovo Plus and 49% owned by Chinese EV battery maker Gotion Hitech. The two companies formed the venture in December 2022 and committed to beginning commercial operation this year.

The batteries will supply Horizon Plus, an EV joint venture owned 60% by PTT and 40% by Taiwanese chipmaker Foxconn. Horizon Plus makes Neta EVs under a licensing deal with Chinese EV manufacturer Hozon Auto. 

The factory's first-phase capacity of 2 GW-hours is equivalent to 50,000 battery packs, in line with demand and the business strategy of Horizon Plus, which is due to start making EVs next year.

Horizon Plus' initial production capacity is expected to be 50,000 vehicles per year, rising to 150,000 in 2030.

Last year, the Thai government started offering subsidies of up to 150,000 baht ($4,200) per vehicle to help bring down EV prices and spur demand. It also offered foreign EV makers tariff-free imports on condition they start making vehicles in Thailand by 2024.

Chinese EV makers, including Neta licenser Hozon Auto, took advantage of the zero tariff to sell their products in Thailand.

Between January and October this year, 58,074 EVs have been sold and registered with the Land Transportation Department, accounting for 10% of new car registrations, according to data from Thailand's Transport Ministry.

All Chinese EV makers active in Thailand are due to start manufacturing in the country next year, substantially boosting battery demand.

Li Zhen, chairman of Gotion High-tech, said Thailand's plan to focus on EVs and energy storage has opened immense opportunities in the new energy industry, including EV batteries. "New energy" vehicles are a Chinese classification that includes EVs, plug-in hybrids and fuel cell cars.

"It's also represents a significant milestone in Gotion's global presence and brings Thailand closer to becoming a leader in the ASEAN battery market," Li said.

Next year is important for the EV business in Thailand, as the government has encouraged manufacturers to set up their own supply chains, as well as seeking to draw new players into the market.

Apart from PTT, Banpu, a Thai coal miner, also entered EV battery business and is due to start commercial operation by the first quarter of next year, aiming to produce battery packs for key Chinese EV makers such as Great Wall Motor.